(1)

August 1, 1977

CONVENTION BETWEEN THE REPUBLIC OF THE PHILIPPINES AND THE

REPUBLIC OF SINGAPORE FOR THE AVOIDANCE OF DOUBLE TAXATION
AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON
INCOME

The Government of the Republic of the Philippines and the Republic of

Singapore,
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Desiring to conclude a Convention for the avoidance of double taxation and the
prevention of fiscal evasion with respect to taxes on income.
Have agreed as follows:
ARTICLE 1
Personal Scope
This Convention shall apply to persons who are residents of one or both of the
Contracting States.
ARTICLE 2
Taxes Covered
1. This Convention shall apply to taxes on income imposed on behalf of
each Contracting State, irrespective of the manner in which they are levied.
2. There shall be regarded as taxes on income all taxes imposed on total
income or on elements of income, including taxes on gains from the alienation of
movable or immovable property and taxes on the total amounts of wages or salaries
paid by enterprises.
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3.
(a)

The existing taxes to which the Convention shall apply are in particular:
in the case of the Philippines:
the income taxes imposed by the Government of the Republic of the
Philippines, (hereinafter referred to as "Philippine Tax");
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(b)

in the case of Singapore:

the income tax (hereinafter referred to as "Singapore tax").

4. The Convention shall apply also to any identical or substantially similar

taxes on income which are imposed after the date of signature of this Convention in
addition to, or in place of, the existing taxes. The Competent Authorities of the
Contracting States shall notify each other of the changes which have been made to
their respective taxation laws.
5. The Competent Authorities of the Contracting States shall notify each
other of the publication by their respective Contracting States of any material
concerning the application of this Convention, whether in the form of regulations,
rulings, or judicial decisions by transmitting the texts of any such materials at least
once a year.
6. If by reason of changes made in the taxation law of either Contracting
State, it seems desirable to amend any article of this Convention without affecting the
general principles thereof the necessary amendments may be made by mutual consent
by means of an exchange of diplomatic notes or in any other manner in accordance
with their constitutional procedures.
ARTICLE 3
General Definitions
1.
(a)

In this Convention, unless the context otherwise requires:

(i) the term "Philippines" means the Republic of the Philippines
and when used in a geographical sense means the national territory
comprising the Republic of the Philippines;
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(ii) the term "Singapore" means the Republic of Singapore;

(b)
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the term "a Contracting State" and "the other Contracting State"

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mean the Philippines or Singapore as the context requires;

(c)

the term "person" includes an individual, an estate, a trust, a

company and any other body of persons which is treated as an
entity for tax purposes;

(d)

the term "company" means any body corporate or any other entity
which is treated as a body corporate for tax purposes;

(e)

the terms "enterprise of a Contracting State" and "enterprise of the

other Contracting State" mean respectively an enterprise carried on
by a resident of a Contracting State and an enterprise carried on by
a resident of the other Contracting State;

(f)

the term "competent authority" means:

(i)

in the case of the Philippines, the Secretary of Finance or

his authorized representative;

(ii)

in the case of Singapore, the Minister of Finance or his

authorized representative;

(g)

the term "tax" means Philippine tax or Singapore Tax as the

context requires;

(h)

the term "national" means:

(i)

any individual possessing the citizenship of a Contracting

State;

(ii)

any legal person, a partnership and association created,

organized or incorporated under the laws of a Contracting
State.
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(i)

the term "international traffic" means any transport by a ship or

aircraft operated by an enterprise of one of the Contracting States
except where such transport is confined solely to places within a
Contracting State.

(2) As regards the application of the Convention by a Contracting State any

term not otherwise defined shall, unless the context otherwise requires, have the
meaning which it has under the laws of that Contracting State relating to the taxes
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which are the subject of the Convention.

ARTICLE 4
Fiscal Domicile
1. For the purposes of this Convention, the term "resident of a Contracting
State" means any person who is resident in a Contracting State for tax purposes of that
Contracting State.
2. Where by reason of the provisions of paragraph 1 an individual is a
resident of both Contracting States, then his status shall be determined, as follows:
(a)

He shall be deemed to be a resident of the Contracting State in

which he has a permanent home available to him. If he has a
permanent home available to him in both Contracting States, he
shall be deemed to be a resident of the Contracting State with
which his personal and economic relations are closest (hereinafter
referred to as his "centre of vital interests");

(b)

If the Contracting State in which he has his centre of vital interests

cannot be determined, or if he has not a permanent home available
to him in either Contracting State, he shall be deemed to be a
resident of the Contracting State in which he has an habitual
abode;

(c)

If he has an habitual abode in both Contracting States or in neither

of them, the competent authorities of the two Contracting States
shall settle the question by mutual agreement.
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3. Where by reason of the provisions of paragraph 1, a person other than an

individual is a resident of both Contracting States, he shall be deemed to be a resident
of the Contracting State in which its place of effective management is situated. If its
place of effective management cannot be determined, the competent authorities of the
Contracting States shall settle the question by mutual agreement.
ARTICLE 5
Permanent Establishment
1. For the purposes of this Convention, the term "permanent establishment"
means a fixed place of business in which the business of the enterprise is wholly or
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partly carried on.

2.

The term "permanent establishment" includes especially but is not limited

to:
(a)

A seat of management;

(b)

A branch;

(c)

An office;

(d)

A store or other sales outlet;

(e)

A factory;

(f)

A workshop;

(g)

A warehouse, in relation to a person providing storage facilities for

others;

(h)

A mine, quarry, or other place of extraction of natural resources;

(i)

A building site or construction or assembly project or installation

project or supervisory activities in connection therewith, provided
such site, project or activity continues for a period more than 183
days; and

(j)

The furnishing of services, including consultancy services, by a

resident of one of the Contracting States through employees or
other personnel, provided activities of that nature continue (for the
same or a connected project) within the other Contracting State for
a period or periods aggregating more than 183 days.

(3) Notwithstanding paragraphs (1), (2), and (4), a permanent establishment

shall be deemed not to include:
(a)

The use of facilities solely for the purpose of storage, display or

occasional delivery of goods or merchandise belonging to the
enterprise;
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(b)

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The maintenance of a stock of goods or merchandise belonging to

the enterprise solely for the purpose of storage, display or

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occasional delivery;
(c)

The maintenance of a stock of goods or merchandise belonging to

the enterprise solely for the purpose of processing by another
enterprise;

(d)

The maintenance of a fixed place of business solely for the purpose

of purchasing goods or merchandise, or for collecting information,
for the enterprise;

(e)

The maintenance of a fixed place of business solely for the purpose

of advertising, for the supply of information, for scientific research
or for similar activities which have a preparatory or auxiliary
character, for the enterprise.

4. A person acting in one of the Contracting States on behalf of an enterprise

of the other Contracting State, other than an agent of an independent status to whom
paragraph (5) applies, shall be deemed to be a permanent establishment in the
first-mentioned Contracting State if
(a)

he has, and habitually exercises in the first-mentioned Contracting

State, an authority to conclude contracts in the name of that
enterprise unless the exercise of such authority is limited to the
purchase of goods or merchandise for that enterprise; or

(b)

he has no such authority, but habitually maintains in the

first-mentioned State a stock of goods or merchandise from which
he regularly delivers goods or merchandise on behalf of the
enterprise.

5. An enterprise of one of the Contracting States shall not be deemed to have

a permanent establishment in the other Contracting State merely because that
enterprise carries on business in that other Contracting State through a broker, general
commission agent, or any other agent of an independent status, where such broker or
agent is acting in the ordinary course of his business. However, when the activities of
such an agent are devoted wholly or almost wholly on behalf of that enterprise, he
shall not be considered an agent of independent status within the meaning of this
paragraph if the transactions between the agent and the enterprise were not made
under arm's length conditions.
6.
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Except with respect to reinsurance, an enterprise of a Contracting State

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shall be deemed to have a permanent establishment in the other Contracting State if it

collects premiums in that other State, or insures risks situated therein, through an
employee or representative situated therein who is not an agent of independent status
to whom paragraph (5) applies.
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7. The fact that a company which is a resident of a Contracting State

controls or is controlled by a company which is a resident of the other Contracting
State, or which carries on business in that other State (whether through a permanent
establishment or otherwise), shall not of itself constitute for either company a
permanent establishment of the other.
ARTICLE 6
Income from Immovable Property
1. Income from immovable property including income from agriculture or
forestry may be taxed in the Contracting State in which such property is situated.
2. For the purpose of this Convention, the term "immovable property" shall
be defined in accordance with the law of the Contracting State in which the property
in question is situated. The term shall in any case include property accessory to
immovable property, livestock and equipment used in agriculture and forestry, rights
to which the provisions of general law respecting landed property apply, usufruct of
immovable property and rights to variable or fixed payments as consideration for the
working of, or the right to work, mineral deposits, sources and other natural resources;
ships, boats and aircraft shall not be regarded as immovable property.
3. The provisions of paragraph 1 shall apply to income derived from the
direct use, letting, or use in any other form of immovable property and to profits from
the alienation of such property.
4. The provisions of paragraphs 1 and 3 shall also apply to the income from
immovable property of an enterprise and to income from immovable property used for
the performance of professional services.
ARTICLE 7
Business Profits
1. The profits of an enterprise of a Contracting State shall be taxable only in
that State unless the enterprise carries on business in the other Contracting State
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through a permanent establishment situated therein. If the enterprise carries on or has

carried on business as aforesaid, the profits of the enterprise may be taxed in the other
State but only so much of them as is attributable to that permanent establishment.
2. Subject to the provisions of paragraph 3, where an enterprise of a
Contracting State carries on business in the other Contracting State through a
permanent establishment situated therein, there shall be attributed to that permanent
establishment profits which it might be expected to make if it were a distinct and
separate enterprise engaged in the same or similar activities under the same or similar
conditions and dealing wholly independently with the enterprise of which it is a
permanent establishment.
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However, insofar as it has been customary in a Contracting State to determine

the profits to be attributed to a permanent establishment on the basis of an
apportionment of the total profits of the enterprise to its various parts, nothing in this
paragraph shall preclude that Contracting State from determining the profits to be
taxed by such an apportionment as may be customary; the method of apportionment
adopted shall, however, be such that the result shall be in accordance with the
principles embodied in this Article.
3. In the determination of the profits of a permanent establishment, there
shall be allowed as deductions expenses which are incurred for the purposes of the
permanent establishment including executive and general administrative expenses so
incurred, whether included in the State in which the permanent establishment is
situated or elsewhere.
4 . Notwithstanding the provisions of paragraph 3, no deduction shall be
allowed in respect of amounts paid or charged (other than reimbursement of actual
expenses) by the permanent establishment to the head office of the enterprise or any
of its other offices, by way of:
(a)

royalties, fees or other similar payments in return for the use of

patents or other rights;

(b)

commission for specific services performed or for management;

and

(c)

interest on money lent to the permanent establishment, except in

the case of banking institution.

5.
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No profits shall be attributed to a permanent establishment by reason of

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the mere purchase by that permanent establishment of goods or merchandise for the
enterprise.
6. Where profits include items of income which are dealt with separately in
other Articles of this Convention, then the provisions of those Articles shall not be
affected by the provisions of this Article.
ARTICLE 8
Shipping and Air Transport
1. Profits from sources within a Contracting State derived by an enterprise of
the other Contracting State from the operation of ships or aircraft in international
traffic may be taxed in the first-mentioned State but the tax so charged shall not
exceed whichever is the lesser of either
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(a)

one and one-half per cent of the gross revenues derived from
sources in that State; or

(b)

the lowest rate of Philippine tax that may be imposed on profits of

the same kind derived under similar circumstances by a resident of
a third State.

2. The provisions of paragraph 1 shall also apply to profits derived from the
participation in a pool, a joint business or in an international operating agency.
ARTICLE 9
Associated Enterprises
1.

Where

(a)

an enterprise of a Contracting State participates directly or

indirectly in the management, control or capital of an enterprise of
the other Contracting State, or

(b)

the same persons participate directly or indirectly in the

management, control or capital of an enterprise of a Contracting
State and an enterprise of the other Contracting State,

and in either case conditions are made or imposed between the two enterprises in their
commercial or financial relations which differ from those which would be made
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between independent enterprises, then any profits which would, but for those
conditions, have accrued to one of the enterprises, but, by reason of those conditions,
have not so accrued, may be included in the profits of that enterprise and taxed
accordingly.
2. Where profits on which an enterprise of a Contracting State has been
charged to tax in that State are also included in the profits of an enterprise of the other
Contracting State and taxed accordingly, and the profits so included are profits which
would have accrued to that enterprise of the other State if the conditions made
between the enterprises had been those which would have been made between
independent enterprises, then the first-mentioned State shall make an appropriate
adjustment to the amount of tax charged on those profits in the first-mentioned State.
In determining such an adjustment due regard shall be had to the other provisions of
this Convention in relation to the nature of the income, and for this purpose the
competent authorities of the Contracting States shall, if necessary, consult each other.
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ARTICLE 10
Dividends
1. Dividends paid by a company which is a resident of a Contracting State to
a resident of the other Contracting State may be taxed in that other State.
2. However, such dividends may be taxed in the Contracting State of which
the company paying the dividends is a resident, and according to that law of that
State, but if the recipient is the beneficial owner of the dividends the tax so charged
shall not exceed:
(a)

15 per cent of the gross amount of the dividends if the recipient is a

company (including partnership) and during the part of the paying
company's taxable year which precedes the date of payment of the
dividend and during the whole of its prior taxable year (if any), at
least 15 per cent of the outstanding shares of the voting stock of
the paying company was owned by the recipient company; and

(b)

in all other cases, 25 per cent of the gross amount of the dividends.

The competent authorities of the Contracting States shall by mutual agreement

settle the mode of application of this limitation.
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3. The provisions of paragraphs 1 and 2 shall not affect the taxation of the
company in respect of the profits out of which the dividends are paid.
4. The term "dividends" as used in this Article means income from shares,
"jouissance" shares or "jouissance" rights, mining shares, founder's shares or other
rights, not being debt-claims, participating in profits, as well as income assimilated to
income from shares by the taxation law of the State of which the company making the
distribution is a resident.
5. The provisions of paragraphs 1 and 2 shall not apply if the recipient of the
dividends, being a resident of a Contracting State, carries on in the other Contracting
State of which the company paying the dividends is a resident, trade or business
through a permanent establishment situated therein, or performs in that other State
professional services from a fixed base situated therein, and the holding by virtue of
which the dividends are paid is effectively connected with such permanent
establishment or fixed base. In such a case, the provisions of Article 7 or Article 14,
as the case may be, shall apply.
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6. Where a company which is a resident of a Contracting State derived

profits or income from the other Contracting State, that other State may not impose
any tax on the dividends paid by the company to persons who are resident of that
State, except insofar as such dividends are paid to a resident of that other State or
insofar as the holding in respect of which the dividends are paid is effectively
connected with a permanent establishment or a fixed base situated in that other State,
nor subject the company's undistributed profits to a tax on the company's
undistributed profits, even if the dividends paid or undistributed profits consist wholly
or partly of profits or income arising in such other State.
ARTICLE 11
Interest
1. Interest arising in a Contracting State and paid to a resident of the other
Contracting State may be taxed in that other State.
2. However, such interest may be taxed in the Contracting State in which it
arises, and according to the law of that State, but if the recipient is the beneficial
owner of the interest the tax so charged shall not exceed 15 per cent of the gross
amount of the interest. The competent authorities of the Contracting States shall by
mutual agreement settle the mode of application of this limitation.
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3. The term "interest" as used in this Article means income from debt-claims
of every kind, whether or not secured by mortgage, and whether or not carrying a
right to participate in the debtor's profits, and in particular, income from government
securities and income from bonds or debentures, including premiums and prizes
attaching to such securities, bonds or debentures, as well as income assimilated to
income from money lent by the taxation law of the State in which the income arises,
including interest on deferred payment sales. Penalty charges for late payment shall
not be regarded as interest for purposes of this Article.
4. The provisions of paragraphs 1 and 2 shall not apply if the recipient of the
interest, being a resident of a Contracting State, carries on in the other Contracting
State in which the interest arises a trade or business through a permanent
establishment situated therein, or performs in that other State professional services
from a fixed base situated therein and the debt-claim in respect of which the interest is
paid is effectively connected with such permanent establishment or fixed base. In
such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.
5. Interest shall be deemed to arise in a Contracting State when the payer is
that State itself, a political subdivision, a local authority, a statutory authority or a
resident of that State. Where, however, the person paying the interest, whether he is a
resident of a Contracting State or not, has in a Contracting State a permanent
establishment or a fixed base in connection with which the indebtedness on which the
interest is paid was incurred, and that interest is borne by that permanent
establishment or fixed base, then such interest shall be deemed to arise in the
Contracting State in which the permanent establishment or fixed base is situated.
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6. Where, owing to special relationship between the payer and the recipient
or between both of them and some other person, the amount of interest paid, having
regard to the debt-claim for which it is paid, exceeds the amount which would have
been agreed upon by the payer and the recipient in the absence of such relationship,
the provisions of this Article shall apply only to the last-mentioned amount. In that
case, the excess part of the payments shall remain taxable according to the law of
each Contracting State, due regard being had to the other provisions of this
Convention.
7.
(a)

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Notwithstanding the provisions of paragraph 2,

interest arising in a Contracting State and paid to a resident of the
other Contracting State shall be taxable only in that other
Contracting State if it is paid in respect of a loan made, guaranteed

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or insured, or a credit extended, guaranteed or insured, by such

institutions as are specified and agreed in letters exchanged
between the competent authorities of the Contracting States; and
(b)

the Philippine tax on interest arising in the Philippines in respect of

public issues of bonds, debentures or similar obligations and paid
by a company which is a resident of the Philippines to a resident of
Singapore shall not exceed 10 per cent of the gross amount of the
interest.
ARTICLE 12
Royalties

1. Royalties arising in a Contracting State and paid to a resident of the other

Contracting State may be taxed in that other State.
2. However, such royalties may also be taxed in the Contracting State in
which they arise, and according to the law of that State, but, if the recipient is the
beneficial owner of the royalties, the tax so charged shall not exceed:
(a)

in the case of the Philippines, 15 per cent of gross amount of the

royalties, where the royalties are paid by an enterprise registered
with the Philippine Board of Investments and engaged in preferred
areas of activities and also royalties in respect of cinematographic
films or tapes for television or broadcasting;

(b)

in the case of Singapore, where the royalties are approved under

the Economic Expansion Incentives (Relief from Income Tax) Act
of Singapore, the royalties shall be exempt;

(c)

in all other cases, 25 per cent of the gross amount of the royalties.

3. The term "royalties" as used in this Article means payments of any kind
received as a consideration for the use of, or the right to use, any copyright of literary,
artistic or scientific work, including cinematographic films or tapes for television or
broadcasting, any patent, trade mark, design or model, plan, secret formula or process,
or for the use of, or the right to use, industrial, commercial or scientific equipment, or
for information concerning industrial, commercial or scientific experience.
4.
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The provisions of paragraphs 1 and 2 of this Article shall not apply if the

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recipient of the royalties, being a resident of a Contracting State, carries on business

in the other Contracting State in which the royalties arise through a permanent
establishment situated therein, or performs in that other State professional services
from a fixed based situated therein, and the right or property in respect of which the
royalties are paid is effectively connected with such permanent establishment or fixed
base. In such a case, the provisions of Article 7 or Article 14 of this Agreement, as the
case may be, shall apply.
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5. Royalties shall be deemed to arise in a Contracting State when the payer

is that State itself, a political subdivision, a local authority, statutory authority, or a
resident of that State. Where, however, the person paying the royalties, whether he is
a resident of a Contracting State or not, has in a Contracting State a permanent
establishment in connection with which the contract under which the royalties are
paid was concluded, and such royalties are borne by such permanent establishment,
then such royalties shall be deemed to arise in the Contracting State in which the
permanent establishment is situated.
6. Where, owing to a special relationship between the payer and the
recipient or between both of them and some other person, the amount of the royalties
paid, having regard to the use, right or information for which they are paid exceeds
the amount which would have been agreed upon by the payer and the recipient in the
absence of such relationship, the provisions of this Article shall apply only to the
last-mentioned amount. In that case, the excess part of the payments shall remain
taxable according to the law of each Contracting State, due regard being had to the
other provisions of this Agreement.
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ARTICLE 13
Gains from the Alienation of Property
1. Gains from the alienation of immovable property may be taxed in the
Contracting State in which such property is situated.
2. Gains from the alienation of movable property forming part of the
business property of a permanent establishment which an enterprise of a Contracting
State has in the other Contracting State or of movable property pertaining to a fixed
base available to a resident of a Contracting State in the other Contracting State for
the purpose of performing professional services, including such gains from the
alienation of such permanent establishment (alone or together with the whole
enterprise) or of such a fixed base may be taxed in the other State. However, gains
derived by an enterprise of a Contracting State from the alienation of ships or aircraft
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operated in international traffic and movable property pertaining to the operation of

such ships or aircrafts, shall be taxable only in that State.
3. Gains from the alienation of shares of a company, the property of which
consists principally of immovable property situated in a Contracting State, may be
taxed in that State. Gains from the alienation of an interest in a partnership or a trust,
the property of which consists principally of immovable property situated in a
Contracting State, may be taxed in that State.
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4. Gains from the alienation of any property, other than those mentioned in
paragraphs 1, 2 and 3 shall be taxable only in the Contracting State of which the
alienator is a resident.
ARTICLE 14
Personal Services
1. Subject to the provisions of Articles 15, 17, 18, and 19, salaries, wages
and other similar remuneration or income for personal (including professional)
services derived by a resident of a Contracting State, shall be taxable only in that
Contracting State, unless the services are performed in the other Contracting State. If
the services are so performed, such remuneration or income as is derived therefrom
may be taxed in that other Contracting State.
2. Notwithstanding the provisions of paragraph 1, remuneration or income
derived by a resident of a Contracting State for personal (including professional)
services performed in the other Contracting State shall be taxable only in the
first-mentioned Contracting State if
(a)

the recipient is present in the other Contracting State for a period

or periods not exceeding in the aggregate 90 days in the case of
professional services and 183 days in other cases, in the calendar
year concerned; and

(b)

the remuneration or income is paid by, or on behalf of, a person

who is a resident of the first-mentioned Contracting State; and

(c)

the remuneration or income is not borne directly by a permanent

establishment which that person has in the other Contracting State.

3.
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The term "professional services" includes independent scientific, literary,

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artistic, educational or teaching activities as well as the independent activities of

physicians, lawyers, engineers, architects, dentists and accountants.
4. Notwithstanding the preceding provisions of this Article, remuneration in
respect of employment as a member of the regular crew or complement of a ship or
aircraft operated in international traffic by an enterprise of a Contracting State shall be
taxable only in that State.
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ARTICLE 15
Director's Fees
1. Director's fees and similar payments derived by a resident of a
Contracting State in his capacity as a member of the board of directors of a company
which is a resident of the other Contracting State, may be taxed in that other State.
2. The remuneration which a person to whom paragraph 1 applies derives
from the company in respect of the discharge of day-to-day functions of a managerial
or technical nature may be taxed in accordance with the provisions of Article 14.
ARTICLE 16
Artistes and Athletes
1. Notwithstanding the provisions of Articles 7 and 14, income derived by
entertainers such as theater, motion picture, radio or television artistes, and musicians,
and by athletes, from their personal activities as such may be taxed in the Contracting
State in which these activities are performed.
2. Where income in respect of personal activities as such of an entertainer or
athlete accrues not to that entertainer or athlete himself but to another person that
income may, notwithstanding the provisions of Articles 7 and 14, be taxed in the
Contracting State in which the activities of the entertainer or athlete are exercised.
3. The provisions of paragraph 1 shall not apply to income derived from
activities performed in a Contracting State by entertainers and athletes if the visit to
that Contracting State is substantially supported by public funds of the other
Contracting State, including any political subdivision, local authority or statutory
body thereof, nor to income derived by entertainers and athletes in respect of such
activities performed for a non-profit and cultural organization no part of the income of
which was payable to, or was otherwise available for the personal benefit of, any
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proprietor, member or shareholder thereof if the organization is certified as qualifying

under the provision by the competent authority of the other Contracting State.
4. Notwithstanding the provisions of Article 7, where the activities
mentioned in paragraph 1 of this Article are provided in a Contracting State by an
enterprise of the other Contracting State the profits derived from providing these
activities by such an enterprise may be taxed in the first-mentioned Contracting State
unless the enterprise is substantially supported from the public funds of the other
Contracting State, including any political subdivision, local authority or statutory
body thereof, in connection with the provisions of such activities, or unless the
enterprise is a non-profit cultural organization referred to in paragraph 3.
ARTICLE 17
Pensions
1. Subject to the provisions of paragraph 1 of Article 18, pensions and other
similar remuneration for past employment arising in a Contracting State shall be
taxable only in that State.
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2. The term "pensions" as used in this Article means periodic payments

made in consideration for past services rendered.
ARTICLE 18
Governmental Functions
1. Remuneration including pension paid by or out of public funds of a
Contracting State or a political subdivision or local authority or statutory authority
thereof to
(a)

a citizen of that Contracting State;

(b)

an individual who is not citizen of the other Contracting State and

goes to the other State solely for the purpose of being engaged by
the first-mentioned State,

for services rendered to that State in the discharge of functions of a governmental

nature shall be exempt from tax in the other State.
2. The provisions of paragraph 1 shall not apply to remuneration including
pension paid in respect of services rendered in connection with any trade or business
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carried on by a Contracting State or a political subdivision or local authority or

statutory authority thereof.
ARTICLE 19
Students and Trainees
1. An individual who was a resident of a Contracting State immediately
before visiting the other Contracting State and is temporarily present in that other
Contracting State solely
(a)

as a student at a University, College or School in that other

Contracting State,

(b)

as a recipient of a grant, allowance or award from a Government or

scientific, educational, religious or charitable organization for the
primary purpose of study, research or training, or

(c)

as a business apprentice

shall be exempt from tax of that other Contracting State in respect of

(i)

all remittances from abroad for the purposes of his maintenance,

education, study, research or training,

(ii)

the grant, allowance or award, and

(iii)

any remuneration for personal services rendered in that other

Contracting State not exceeding the sum of three thousand and six
hundred Singapore dollars or its equivalent in Philippine currency
in any calendar year with a view to supplementing the resources
available to him for such purposes.
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2. An individual, who was a resident of a Contracting State immediately

before visiting the other Contracting State and is temporarily present in that other
Contracting State solely as a trainee for the purpose of acquiring technical,
professional or business experience, shall for a period not exceeding two years from
the date of his first arrival in that other Contracting State in connection with that visit
be exempt from tax in that other Contracting State in respect of
(a)
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all remittances from abroad for the purposes of his maintenance or

training, and

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(b)

any remuneration for personal services rendered in that other

Contracting State not exceeding the sum of twelve thousand
Singapore dollars or its equivalent in Philippine currency in any
calendar year during that visit provided such services are in
connection with his training or incidental thereto.

3. The benefits of paragraphs 1 and 2 of this Article shall not be

concurrently cumulative.
ARTICLE 20
Teachers and Researchers
1. An individual who is a resident of a Contracting State immediately before
making a visit to the other Contracting State, and who, at the invitation of any
university, college, school or other similar educational institution, which is recognized
by the competent authority in that other Contracting State, visits that other
Contracting State for a period not exceeding two years solely for the purpose of
teaching or research or both at such educational institution shall be exempt from tax
in that other Contracting State on his remuneration for such teaching or research.
2. This article shall not apply to income from research if such research is
undertaken not in the general interest but primarily for the private benefit of a specific
person or persons.
ARTICLE 21
Income Not Expressly Mentioned
Items of income not expressly mentioned in the foregoing Articles of this
Convention and arising in a Contracting State may be taxed in that State.
ARTICLE 22
Elimination of Double Taxation
1. Subject to the laws of Singapore regarding the allowance as a credit
against Singapore tax of tax payable in any country other than Singapore, Philippine
tax payable in respect of income derived from the Philippines shall be allowed as a
credit against Singapore tax payable in respect of that income. Where such income is
a dividend paid by a company which is a resident of the Philippines to a company
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which is a resident of Singapore and which owns not less than 15 per cent of voting
shares of the company paying the dividend, the credit shall take into account the
Philippine tax payable by that company in respect of its income. The credit shall not,
however, exceed that part of the Singapore tax, as computed before the credit is given,
which is appropriate to such item of income.
2. The term "Philippine tax payable" shall be deemed to include the amount
of Philippine tax which would have been paid if the Philippine tax had not been
exempted or reduced in accordance with this Convention and the special incentive
laws designed to promote economic development in the Philippines, effective on the
date of signature of this Convention, or which may be introduced in the future in the
Philippine taxation laws in modification of, or in addition to, the existing laws.
cdasia

3. Subject to the laws of the Philippines regarding the allowance as a credit

against Philippine tax of tax payable in any country other than the Philippines,
Singapore tax payable in respect of income derived from Singapore shall be allowed
as a credit against the Philippine tax payable in respect of that income. Where such
income is a dividend paid by a company which is a resident of Singapore to a
company which is a resident of the Philippines and which owns not less than 15 per
cent of voting shares of the company paying the dividend, the credit shall take into
account the Singapore tax payable by that company in respect of its income. The
credit shall not, however, exceed that part of the Philippine tax, as computed before
the credit is given, which is appropriate to such item of income.
4. The term "Singapore tax payable" shall be deemed to include the amount
of Singapore tax which would have been paid if the Singapore tax had not been
reduced in accordance with this Convention and the special incentive laws designed to
promote economic development in Singapore, effective on the date of signature of this
Convention, or which may be introduced in the future in the Singapore taxation laws
in modification of, or in addition to, the existing laws.
ARTICLE 23
Non-Discrimination
1. The nationals of a Contracting State shall not be subjected in the other
Contracting State to any taxation or any requirement connected therewith which is
other or more burdensome than the taxation and connected requirements to which
nationals of that other State in the same circumstances are or may be subjected.
2.
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The taxation on a permanent establishment which an enterprise of a

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Contracting State has in the other Contracting State shall not be less favourably levied
in that other State than the taxation levied on enterprises of that other State carrying
on the same activities.
3. Nothing in this Article shall be construed as obliging a Contracting State
to grant to
(a)

residents of the other Contracting State any personal allowances,

relief and reductions for tax purposes which it grants to its own
residents, or

(b)

nationals of the other Contracting State whose personal

allowances, reliefs and reductions for tax purposes which it grants
to its own citizens who are not resident in that Contracting State or
to such other persons as may be specified in the taxation laws of
that Contracting State.

4. Enterprises of a Contracting State, the capital of which is wholly or partly

owned or controlled, directly or indirectly, by one or more residents of the other
Contracting State, shall not be subjected in the first-mentioned State to any taxation or
any requirement connected therewith which is other or more burdensome than the
taxation and connected requirements to which other similar enterprises of the
first-mentioned State, are or may be subjected.
5. Nothing in this Article shall be construed so as to prevent either
Contracting State from limiting to its nationals the enjoyment of tax incentives
designed to promote economic development in that Contracting State.
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6. In this Article, the term "taxation" means taxes which are the subject of
this Convention.
ARTICLE 24
Mutual Agreement Procedure
1. Where a resident of a Contracting State considers that the actions of one
or both of the Contracting States result or will result for him in taxation not in
accordance with this Convention, he may, without prejudice to the remedies provided
by the national laws of those States, address to the competent authority of the
Contracting State of which he is a resident an application in writing stating the
grounds for claiming the revision of such taxation. To be admissible, the said
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application must be submitted within two years from the first notification of the action
which gives rise to taxation not in accordance with the Convention.
2. The competent authority referred to in paragraph 1 shall endeavour, if the
objection appears to it to be justified and if it is not itself able to arrive at an
appropriate solution, to resolve the case by mutual agreement with the competent
authority of the other Contracting State, with a view to the avoidance of taxation not
in accordance with the Convention.
3. A Contracting State shall not, after the expiry of the time limits provided
in its national laws increase the tax base of a resident of either of the Contracting
States by including therein items of income which have also been charged to tax in the
other Contracting State. This paragraph shall not apply in the case of fraud, wilful
default or neglect.
4. The competent authorities of the Contracting State shall endeavor to
resolve by mutual agreement any difficulties or doubts arising as to the interpretation
or application of the Convention. In particular, the competent authorities of the
Contracting States may consult together to endeavour to agree:
(a)

on the attribution of profits to a resident of a Contracting State and

its permanent establishment situated in the other Contracting State;

(b)

on the allocation of income between a resident of a Contracting

State and any associated person provided for in Article 9.

5. Nothing in this Convention shall be construed as preventing the

Philippines from taxing its citizens in accordance with its domestic legislation.
6. The competent authorities of the Contracting States may consult together
for the elimination of double taxation and the prevention of fiscal evasion in cases not
provided for in the Convention.
ARTICLE 25
Exchange of Information
1. The competent authorities of the Contracting States shall exchange such
information as is necessary for the carrying out of this Convention and of the
domestic laws of the Contracting States concerning taxes covered by this Convention
insofar as the taxation thereunder is in accordance with this Convention, or for the
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prevention of fraud or fiscal evasion in relation to such taxes. Any information so

exchanged shall be treated as secret and shall not be disclosed to any persons or
authorities other than those concerned with the assessment or collection of the taxes
which are the subject of this Convention.
2. In no case shall the provisions of paragraph 1 be construed so as to
impose on one of the Contracting States the obligation:
(a)

to carry out administrative measures at variance with the laws or

the administrative practice of that or of the other Contracting State;

(b)

to supply particulars which are not obtainable under the laws or in

the normal course of the administration of that or of the other
Contracting State;

(c)

to supply information which would disclose any trade, business,

industrial, commercial or professional secret or trade process, or
information, the disclosure of which would be contrary to public
policy.
ARTICLE 26
Diplomatic and Consular Offices

1. Nothing in this Convention shall affect the fiscal privileges of diplomatic

and consular officials under the general rules of international law or under the
provisions of special agreements.
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ARTICLE 27
Entry Into Force
1. This Convention shall be ratified and the instruments of ratification shall
be exchanged at Singapore.
2. This Convention shall enter into force upon the exchange of the
instruments of ratification and its provisions shall have effect:
(a)

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in respect of tax withheld or deducted at source on amounts paid to

non-residents on or after the first day of January in the calendar
year in which the exchange of instruments of ratification takes

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place; and
(b)

in respect of other taxes for taxation years or years of assessment

beginning on or after the first day of January in the calendar year
in which the exchange of instruments of ratification takes place.
ARTICLE 28
Revision or Termination

This Convention shall continue in effect indefinitely but either Contracting

State may, on or before June 30 in any calendar year after the year of exchange of the
instruments of ratification, give notice of revision or termination to the other
Contracting State, and in the event of termination, the Convention shall cease to have
effect:
(a)

in respect of tax withheld or deducted at the source on amounts

paid to non-residents on or after the first day of January in the
calendar year following that in which the notice is given; and

(b)

in respect of other taxes for taxation years or years of assessment

beginning on or after the first day of January in the calendar year
following that in which the notice the given.
cdasia

IN WITNESS WHEREOF, the undersigned duly authorized thereto have

signed this Convention.
Done in duplicate at Manila this 1st day of August, of the year 1977.

For the Government of the Republic of the Philippines

For the Government of the Republic of Singapore

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Endnotes
1 (Popup - Popup)
Revenue Regulations No. 07-82
PD 1233

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